ANALYSIS OF SECTOR ECONOMIC GROWTH IN EAST JAVA DURING THE COVID-19: LOCATION QUOTIENT AND SHIFT SHARE APPROACH

Abstract

This study aims to analyze the structure of the economy and the shift in the economic sector due
to the Covid-19 pandemic in East Java for the 2019-2020 period. This research is a descriptive
quantitative study, the data used in this study is secondary data for Gross Domestic Product
and Gross Regional Domestic Product for East Java Province in 2019-2020 with a total of 17
sectors studied. The data is processed using location quotient and shift-share analysis tools.
The results of the analysis using the Location Quotient approach show that there are five
sectors which are the base sectors, namely the Manufacturing Industry sector; Water Supply,
Sewerage, Waste Management and Remediation Activies; Wholesale and Retail Trade, Repair
of Motor Vehicles and Motorcycles; Transportation and Storage; and Information and
Communication. The results of the analysis using the shift-share approach show that all 10
sectors in the analysis period show negative numbers. Based on the Location Quotient and
Shift Share analysis in East Java Province in 2019-2020 it can be concluded that: the leading
sector, with the potential to excel (SLQ>1, DLQ>1) and the highest Shift Share Index are in the
Water Supply, Sewerage, Waste Management and Remediation Activies sectors. and for those
that are not included in the leading sector, have no potential to excel (SLQ<1, DLQ<1) and the
smallest Shift Share Index is in the Other Services Activities sector.